FAQ's Compiled by The Fisherman's Treasure Chest - Collector Plates of all kinds, Art and other collector items.

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FAQ's Compiled by the Fisherman

FAQ's Answers from The Fisherman, CIB and Other sources.

What is a Primary and Secondary Market?
     The Primary Markets you can consider retail. This is the first offering of a limited edition issue by a producer or mint and stays normally at one issue price for each entry of a series. This issue price is determined by the producer.      The Secondary Market is normally those listing or issues from limited edition series that is completed and the Primary Market producers have depleted their stock, or time has passed per the producers policies and they are no longer offered by them as a Primary offering. This is when economics begins the appreciation process and the plates can vary in price from the Primary Issue Price. Appreciation is also defined as to the popularity of the series or even one entry in a series.

How are prices for limited edition collectibles established on the secondary market?
     As with most items in an open marketplace, prices are established in response to the supply of and demand for each individual item. Since limited edition pieces are, by definition, limited in the number of pieces available, demand for each piece will impact the market value of the item.
     Over time, the "supply" of a particular piece may decrease, as natural disasters and home accidents result in damage or breakage. As the supply shrinks, the price may increase again.
     Similarly, items that are in relatively large supply and experience small to moderate demand may see modest or low appreciation on the secondary market. Some items with broad distribution and low demand do not appreciate at all on the secondary market.
     These fluctuations in the secondary market value of items are tracked by organizations like the Collectors' Information Bureau. Twice a year, the CIB surveys over 300 secondary market dealers and asks them to report back on the actual prices collectors have paid for individual pieces. This input is compiled and reported in the Collectibles Price Guide & Directory to Secondary Market Dealers (published each May) and the Collectibles Market Guide & Price Index (published each November).

What does a collector need to know if they are planning to buy or sell on the secondary market?

There are 4 things to consider when you begin thinking about buying or selling on the secondary market:

Know the value of the piece you want to buy or sell. This information can be found by checking reputable price guides like the CIB's Collectibles Price Guide & Directory to Secondary Market Dealers. Since these books list actual prices paid by collectors in recent transactions, they represent an excellent starting point for determining the market value of an item.

Understand the "terms of sale" used by the secondary market dealer that you're considering. Individual dealers vary greatly in the services they offer the collectors and the fees they charge for these services. Some dealers buy pieces outright, while others provide a listing service or take goods on consignment. Some dealers charge as little as 10% commission, while others charge upwards of 30% to 50%. In most cases, the buyer pays the fee. However, some dealers will ask the seller to pay all or part of the fee.

Be realistic about the condition of your piece. Note any markings, mold numbers, etc. Carefully check your piece for any scratches, blemishes or cracks. If you are up front with the dealer, you'll save yourself time and aggravation. Gather the original paperwork and box. If you don't have these materials, ask the dealer how this will affect the price of the piece you're selling. If you're looking to buy and have no intention of reselling, let the dealer know that you would accept a piece without the original paperwork. But be sure that you will not want to resell the piece later, since this will have an impact on the price you can demand.

Ask if the piece will be inspected by the dealer. Many dealers will suggest that you write your initials or some other "code" on the bottom of the piece in pencil. By doing so, you can be sure that the piece you send in is the piece you get back should the sale fall through. Check with the dealer before putting any markings on the piece to ensure that it will not effect the value of the piece.

Does the presence of an artist's signature on a piece increase its value?
Though the presence of a signature is not as important as it used to be, in some cases the value of a signed piece may be 15% to 25% higher than a comparable unsigned piece.

Age of the artist - artists who are reaching the end of their career may be doing fewer signings, making a signed piece more valuable to many collectors.
Accessibility of an artist - signatures from artists that rarely make themselves available for signings are often more coveted and therefore add to the value of a signed piece.
Buyer's preference - more and more artists are taking to the road for personal appearances. These events give the collector the chance to share a personal experience with the artist. Some collectors prefer to buy unsigned pieces because they plan to have the artist sign the piece for them personally at an upcoming event.

How important is it to save the original box?

Boxes are very important and the absence of an original box will often result in a lower selling price.
If you have a collectible that breaks and you have your original box, you can buy a replacement piece without the box (since you don't need it) and usually save some money.
On a more practical note, the manufacturer designs the box to afford the best possible protection for the piece during shipment. If you and your collectible move, the original box will be your best shot at getting your collection safely to its new home.

What steps should I expect to go through in buying or selling collectibles through a secondary market dealer or exchange?
The average secondary market transaction takes about 3 weeks to complete.

Call the secondary market dealer/exchange and tell them about the piece you want to buy or sell. Be specific and include the product number if possible.
If you are looking to buy a piece, the dealer will tell you if they currently have it listed (available from a seller) or in stock, and what the selling price is. The selling price will usually include a commission or service fee for the dealer/exchange.
If you are looking to sell a piece, you should be prepared to tell them your "asking price." This price is the amount of money you expect to clear after the transaction is completed, and should not include the commission. In most cases, the dealer will add the commission on top of your asking price. Keep in mind that you must pay the shipping and insurance charges necessary to get your piece to the dealer/exchange. The buyer will usually pay to have the item shipped to them from the dealer/exchange.
Once a buyer agrees to pay the price asked, the dealer contacts the seller and has the piece shipped to the dealer for inspection. At the same time, the buyer sends his/her payment to the dealer.
After the piece is inspected by the dealer and found to be in acceptable condition, the piece is shipped to the buyer for their inspection. Before it is shipped, most dealers will put a marking (often invisible) on the bottom of the piece. This is a safeguard to ensure that if the piece is not accepted, the same piece is returned.
The buyer usually will have a set time-period (3 to 5 days) to either accept or reject the piece. If the piece is accepted by the buyer, the dealer pays the seller the agreed-upon asking price. If the piece is not acceptable, it is returned to the dealer who can either return it to the seller, or sell it to another buyer for the original asking price.

It seems that there is a wide range of limited edition products being sold today. Has this resulted in a slow-down in secondary market trading?
Quite the contrary! The increased vitality of the primary market, as seen in the growing number of manufacturers and lines, has resulted in more vigorous trading on the secondary market. There are more collectors than ever before, they are younger and have more disposable income then their predecessors. In many cases, they're getting started later in a series - after the first few issues have retired - so increased demand for earlier pieces is generated. All of this fuels a very strong secondary market.

Is trading or bartering an option for acquiring limited edition collectibles?
Trading and/or bartering is an alternative to buying and selling on the secondary market. Collectors clubs and "swap and sell" events offer the best avenue for trading or bartering, since you have the opportunity to inspect the piece and negotiate right on the spot.

If you have a large collection, is it better to sell it as a "collection" or as single pieces?
It is very difficult to sell an entire collection unless it is comprised of all older pieces, since collectors usually have some of the pieces from the collection that they're building. Often, they are looking to supplement their own collection of later issues with some of the earlier pieces that they missed.
It's also typically quite expensive to purchase an entire collection at once, so collectors will add to a collection piece-by-piece as they can afford the investment.
You will usually receive greater value for your collection if you sell it one piece at a time, rather than trying to sell the whole collection at once to one buyer. By listing your collection as individual pieces with a secondary market dealer, you have a better chance of moving all the pieces, though it may take some time.

Do variations in a piece effect its value?
Variations are not as uncommon as you may think. Usually they do not effect the value of a piece. The exception to this rule is variations that qualify as "mistakes." Misspelling and other obvious mistakes will usually make a piece more valuable.

Fisherman

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